What is Cross-Merchandising?
Cross-merchandising is a unique in-store merchandising technique that increases sales by placing complementary products next to each other. The idea involves arranging goods in such a way that they encourage spontaneous purchases. For example, pasta next to sauce or coffee next to desserts.
The main product is what the customer comes for purposefully. It is the centerpiece of the layout and focuses the customer's attention.
An accompanying product is an add-on that enhances the value of the primary purchase. Its task is to be visible and logically connected to the main product.
Objectives of Cross-Merchandising In Retail
The objectives of cross-merchandising can vary from business to business, but the basic objectives remain universal:
- Increase sales. Proper cross-merchandising encourages customers to purchase additional merchandise.
- Increasing the average receipt. By evoking associations between products, a salesperson incentivizes customers to spend more.
- Stimulating impulse purchases. A customer who sees a suitable product next to the selected one is more likely to put it in the shopping cart.
- Improving buying behavior. A well-organized assortment layout simplifies the search process and makes shopping more comfortable for customers.
- Educating the consumer. By demonstrating how the product can be used, the salesperson helps the customer discover new ways to use the goods.
- Promotion of new products. Placing new products next to popular items increases their recognition and purchase chances.
Rules of Cross-Merchandising
For cross-merchandising to be effective, it is important to follow a few key rules:
- Combination logic. The connection between merchandise should be obvious and functional. Syrups can be displayed next to the coffee department, and sanitary napkins near the department with baby goods.
- Convenience of location. The layout should be accessible, and goods should be at eye level or within easy reach.
- Aesthetics and order. Goods are placed neatly and attractively so as not to distract the customer with clutter.
- Seasonality. It is more effective to offer cooling drinks with appetizers in the summer and hot drinks with desserts in the winter.
- Monitoring and analytics. Regular evaluation of the effectiveness of layouts allows you to adjust approaches in time.
- Zoning. Additional products can be placed at the end of the shelf, in the checkout area or above the main product to maximize the emphasis.
Cross-Merchandising Examples
Cross merchandising helps build logical product associations. In grocery stores, you may find successful combinations such as wines next to cheeses or skewers next to barbecue meats. Clothing stores create harmonious ensembles by placing belts next to jeans or ties next to shirts.
Electronics and home appliances also become an excellent platform for cross-selling: chargers or cases perfectly complement the main assortment. In beauty stores, shampoos are successfully paired with conditioners, creating visually understandable pairs.
The effectiveness of cross-merchandising is especially noticeable in such retail formats as pharmacies, pet stores, or children's goods departments. For example, in pharmacies, customers are offered vitamins and hygiene goods following the leading products, and in pet stores, small toys for pets are offered in the checkout area.
Cross-Merchandising Techniques
To effectively utilize the opportunities presented by a cross-merchandising strategy, you need to master the following approaches:
- Thematic zones. This is where products are grouped together based on a common purpose or goal, such as “everything for a picnic” or “getting ready for school.”
- Situational Sectors.
A larger-scale technique encompassing entire departments focused on various related goods. In the washing machine department, laundry detergents, laundry conditioners, dryers, and ironing boards are placed side by side.
- Use of presentation elements.
Various tools can be used in the layout, such as:
- Open shelving.
- Floor and modular displays.
- Presentation bollards and podiums.
Aesthetically designed layout elements attract attention and simplify navigation for the customer.
Retail equipment of any configuration is available in the PlanoHero service. You can use ready-made templates or create equipment from scratch to meet your business needs.
- Ready-made solutions.
This technique involves the formation of sets that visually demonstrate the combination of several goods. In a clothing store, it can be a mannequin dressed in a jacket, scarf, and hat, which stimulates the buyer to buy the whole set.
How to Control the Effectiveness of Cross-Merchandising?
Controlling the effectiveness of cross-merchandising requires accurate evaluation: it is important to compare the level of sales before the introduction of the joint layout and after it. This allows you to identify how well the selected products complement each other and what changes should be made.
The PlanoHero planogram software greatly simplifies this process. With its help, you can create professional planograms and control their execution right in the store. The tool provides analytics of layout efficiency, helping to evaluate the results at specified intervals - be it weekly, monthly, or quarterly.
FAQ
What is cross-selling merchandise?
Cross-selling merchandise refers to the strategic placement or promotion of complementary products that encourage customers to buy additional items alongside what they originally came for. It’s not just about increasing sales — it’s about anticipating customer needs. In-store, this might mean placing dish soap near kitchen sponges. In digital planogramming, cross-selling can be visualized and standardized across store layouts to ensure consistency in suggestive selling throughout the retail chain.
What is an example of cross-merchandising in a grocery store?
A common yet effective example of cross merchandising in a grocery store is placing taco shells, seasoning, and salsa next to fresh ground beef and shredded cheese. Though these items belong to different product categories, their joint placement forms a meal idea. This tactic helps shoppers see combinations they might not have considered, speeds up decision-making, and encourages impulse buying, especially when such groupings are part of a clearly designed planogram.
What is an example of cross-shopping?
Cross-shopping occurs when a customer blends different spending behaviors, such as purchasing premium and budget-friendly products in the same trip. For instance, a shopper might buy an organic smoothie and a value-pack of instant noodles in the same basket. This reflects real-life buying patterns and highlights the importance of understanding customer intent beyond price points. Retailers who monitor cross-shopping trends can fine-tune their assortments and shelf strategies to meet diverse expectations in a single store visit.
Related articles:
How to Merchandise a Retail Store [Display Strategies and Cross Merchandising Ideas]
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